Final answer:
Dependency theory explains global inequality by highlighting how core nations exploit peripheral nations, causing a cycle of economic dependence and hindering stable development.
Step-by-step explanation:
The theory that posits the world is divided between a dominant "core" and a dependent "periphery" as a result of global capitalist expansion is known as dependency theory. This theory challenges the modernization theory, suggesting that global inequality is primarily caused by core nations exploiting the resources and labour available in peripheral and semi-peripheral nations. Dependency theory illustrates how peripheral nations remain dependent on core nations for economic stimulus and access to the global economy, leading to a cycle of dependence that hinders their chances of stable economic growth.
According to dependency theorists, this global stratification reinforces the position of core nations such as the United States and the United Kingdom while maintaining peripheral nations in a state of economic and social subordination. This results in segmented labor markets that disproportionately benefit core nations. Furthermore, core nations may also intentionally keep peripheral nations in turmoil to minimize costs and maximize resource extraction.